this happens to me in the current Ubuntu 10.04 under gnome-terminal and on an actual VT. i haven't fully tested, but it doesn't happen in the same gnome-terminal when SSH'd into a Debian system.
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quack quixoteMay 30 '10 at 1:02

@blueyed: i checked my bash's current readline settings for C-c, but found nothing. this is the only thing i've found that affects the issue, but maybe someone else will know of a more targetted fix.
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quack quixoteMay 30 '10 at 18:28

@quack quixote: There aren't any readline variables that affect this and though you can bind ^C to a readline function or macro but it won't do anything because the terminal driver controls its function.
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Dennis WilliamsonMay 30 '10 at 20:13